In a significant development for the Asian startup ecosystem, Trustana, a cross-border trade platform backed by Temasek, has reported a notable reduction in financial losses for the year 2024.
Despite ongoing challenges, the company has managed to cut its losses significantly compared to previous years, signaling a potential turnaround in its operational efficiency.
Trustana’s Journey and Temasek’s Support
Founded in 2021 by Temasek, Trustana has aimed to revolutionize B2B trade by connecting small and medium-sized enterprises (SMEs) across Singapore and China, tapping into a multi-trillion-dollar global market.
The platform’s mission to digitize and streamline cross-border trade has garnered attention, but profitability has remained elusive due to high operational costs and competitive pressures.
Financial Progress Amidst Bleeding Cash
According to recent reports, Trustana’s losses in 2024 have decreased, reflecting strategic cost-cutting measures and improved revenue streams from its digital trade solutions.
However, the company continues to bleed cash, raising questions about the sustainability of its current business model in a highly competitive sector.
Impact on SMEs and the Trade Ecosystem
Trustana’s efforts have had a tangible impact on SMEs, enabling them to access international markets through tools like AI-driven product content enrichment and automated onboarding processes.
Despite financial struggles, its partnerships, such as with OneConnect, have strengthened its position as a facilitator of digital trade between key Asian economies.
Looking Ahead: Challenges and Opportunities
Looking to the future, Trustana faces the dual challenge of achieving profitability while scaling its user base in a crowded marketplace dominated by larger players.
Analysts suggest that further investment or strategic pivots may be necessary to ensure long-term viability, especially as global trade dynamics evolve.
With Temasek’s backing, there is optimism that Trustana can leverage its resources to innovate and capture a larger share of the cross-border trade market.
For now, the reduction in losses marks a cautious step forward, but the road to financial stability remains steep for this ambitious platform.
Andrew Lee
